Development of Value Propositions in Sustainable Startups

Abstract: The combination of a growing global population as well as the increasing material consumption has implications for a finite planet. Taking the business model approach for achieving sustainable development gives the opportunity for more long term, thorough and radical solutions. The modification of the business model can have implications for all processes and resources in which a company creates, delivers, captures and exchanges value. Sustainable business model innovation is an emerging research stream which focuses on strengthening companies’ ability to develop sustainable business models. Thus, allowing companies to pursue profit as well as a positive impact on society and/or the environment. The core of the sustainable business model is the sustainable value proposition, which illustrates the need for several stakeholders such as customers, society, the environment and shareholders. The purpose of this study was to explore and investigate the design of sustainable value propositions by examining the value proposition design in sustainable startups. In order to fulfill this purpose, the study followed a qualitative, multiplecase study with an abductive approach. Nine startups were studied by semistructured interviews. The findings of this study suggests that priorities between stakeholders affect the design of the value proposition. Furthermore, the background of founders and the context of the problem also influenced the value proposition. The study also found that the interconnection of stakeholders and their problems lead to the values provided and in turn, the product/service.